Bond Allocation Program

Program Description

Pursuant to state and federal law, the department administers the "Georgia Allocation System" for local and
state government issuing authorities seeking to issue "private activity tax exempt bonds". Georgia is
authorized to use up to $100 per capita a year, or $1,031,037,100 for 2017 projects ranging from the
traditional industrial development bond (IDB) for manufacturing concerns and mortgage revenue
bonds (MRB) for single family mortgages to bonds for multi-family housing development and exempt
facility bonds. The department utilizes a very specific application procedure that ensures allocation
is available throughout the year. Allocation amounts are set aside for economic development
purposes, housing purposes, and purposes such as solid waste disposal. To receive an allocation,
the local issuing authorities must approve the project, hold a public hearing, have local government
approval, and general financing in place. Economic development projects must commit to create or
retain 1 job for every $125,000 of financing. Multi-family housing projects must demonstrate that a
minimum number of units will be set aside for low to moderate income families and single-family
proposals must demonstrate the ability to turn allocations into cost-effective mortgages for first-time
low and moderate income home buyers. The bottom line is that use of this scarce resource allows for
lower than normal financing costs, resulting in the creation or retention of jobs and expansion of
affordable housing.